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INTERNSHIP REPORT

SUBMITTED TO

SIR USMAN GHAURI Registrar of Hajvery University LahoreSUBMITTED BY

FARAZ AHMAD ROLL#107-931 BBA Hons SESSION Feb 2007-DEC 2010

THE HAJVERY UNIVERSITY LAHORE

TABLE OF CONTENTS

Sr.#1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

CONTENTSPreface DIB & Its Success Story Dubai Islamic Bank Product and Services Board Members Vision Mission Why Islamic Bank DIB Global DIB Pakistan Limited News & Event Deviation for prime Minister fund for Relief of Victims of Terrorism DIB Branch Network DIB Best Islamic Bank in Middle East Management Team Organization Chart Question/Answers Question # 1 Question # 2 Question # 3 Question # 4 Question#5 Question # 6 Question # 7 Question # 8 Question # 9 Question # 10 Question # 11

PAGE#4 5 6 6 6 7 7 7 9 11 11 14 17 17 20 21 22 23 25 26 27 27 28 30 31 32 32 33

PREFACEPractice makes one perfect and Theory without practice is sterile are the commonly known proverbs. If education is meet for knowledge, Training is there to make one perfect. Taste is checked not told. Training always helps

people to prove what the real essence of education is. That is why, internship is our BBA program is set as an internal part and must for all the students so that they can check the difference between what is taught and what is actually practiced in the market. Different students are given assignments of internship at different organizations in different cities. I have prepared a report on that work that I had done internship in Dubai Islamic Bank Gulberg Lahore. I started internship out there on Jan 02, 2011 to Feb 28, 2011. I have tried my level best to gain whatever was possible in this short span of internship period. This report is having all the information about the company.

DIB-ITS SUCCESS STORYHistoryDubai Islamic Bank being the world's first Islamic bank combines the best of traditional Islamic values with the technology and innovation that characterise the best of modern banking. Since its formation in 1975, Dubai Islamic Bank has established itself as the

undisputed leader in its field. It also has set standards for others to follow the trend towards Islamic banking which gathers momentum in the Arab world and internationally. Islamic banking Dubai is one of the world's fastest-growing economic sectors, comprising close on 200 institutions responsible for assets estimated at more than $200 billion. Different Islamic banking sectors of Dubai for helping customers in easy banking includes : Johara Banking Business Banking Corporate Banking Investment Banking Real Estate finance Sharia Board Electronic Banking Service- (Online Banking,Mobile Banking, Calculator,Phone Banking.) Retail Banking Private Banking

Dubai Islamic Bank is a public joint stock company whose share is quoted on the Dubai Financial Market. The bank reported AED 1.56 billion in net profit for the year ended December 31, 2006 rising by 47% compared to AED1.06 billion for the year ended December 31, 2005. The profit for 2006, including depositors' profits, stood at AED 3.3 billion, an increase of 65% compared to AED 2 billion for the year ended December 31, 2005. Financing and investment operations also delivered strong growth, with total investment and financing assets including investments in Sukuks for the Nakheel Group raising US$3.52 billion which stood at AED 38.8 billion, an increase of 28% over last year. Customer deposits also showed an aggressive growth of 43% over last year reaching AED47.7 billion in 2006. The bank has been proactive in creating partnerships and alliances at local and international level. Few up coming projects and few on going projects: DIB to open branch in Dubai Industrial city. DIB launches new branch on AL Ittihad road. DIB team highlights strength of Islamic Finance sector to London-based institutional investors. DIB concludes Emarati programme for 36 UAE nationals. DIB sets up campaign on Johara banking service DIB and AL HAMAD GROUP sign AED 735 million credit facility agreements.

As a leading bank in UAE, Dubai Islamic Bank is dedicated to the nation's economic development and prosperity and also providing products and services in the realm of corporate finance to stimulate trade and industry progress and expansion.

Dubai Islamic Bank PakistanDubai Islamic Bank has established itself as the undisputed leader in its field. It was

established in 1975. The Bank launched its operation by its first branch in the commercial city of Karachi on March 28, 2006. DUBAI ISLAMIC BANK: Dubai Islamic Bank is the pioneer Islamic bank of the world. It is unique in functioning as it a combination of Islamic banking and advance banking. Dubai Islamic Bank was launched in the year 1975, since then it has been the number one Islamic bank of the world. Dubai Islamic Bank founded the Islamic banking in the world. Product and Services: Currently Dubai Islamic Bank is providing following services and products: Current Account Saving Account Fixed Deposit VISA Debit Card Home Finance Auto Finance Priority Banking Internet/E-Banking Phone Banking Lockers Schedule of Charges

Board Members Our Shariah Board members are widely acclaimed as leaders in the field of Islamic Finance. A humble introduction to each member is given here.

Dr. Hussain Hamid Hassan (Chairman and Shariah Advisor). Dr. Muhammad Qaseem. Dr. Ajil Jasimal Nashim.

Dr. Muhammad Qaseem Dr. Muhammad Qaseem is currently Country Head of DIBPLs Fatwa & Sharia Supervision Board. He has also served as a Sharia expert in the Sharia Structuring and Coordination Department with Emirates Islamic Bank. Dr. Qaseem holds a Ph.D in Tafseer and Quranic Sciences from the International Islamic University of Islamabad. Amongst his contributions to Islamic Banking: Points to Ponder and translation, under the aegis of IIUI, a part of the verdict of the Supreme Court of Pakistan, banning Riba as well as many other significant articles on various topics especially in the field of Tafseer. He has vast experience of teaching Islamic disciplines over a period of 18 years in B.A and M.A programmes of International Islamic University Islamabad. Vision Dubai Islamic Bank Pakistan will be the leading provider of world class banking the Islamic way by being the first choice of our customers and our employees. Mission Dubai Islamic Bank Pakistan provides Sharia compliant financial services and products through the best of innovation, talent and technology. Value WeValueTrustListeningInnovationSocial ResponsibilityFun Why Islamic Banking? In the light of Allahs commands, it is obligatory on us to try to find and adopt the right banking system, one that follows the principles set by the Creator. Those who learn to differentiate between what has been allowed and what has been forbidden will be the ones with a clear conscience when they assemble in front of the Creator on the Day of Judgment.

Allah has clearly ordained the prohibition of Riba in the Glorious Quran. Verses [2:278279] translate into: 278. O ye who believe! Fear Allah, and give up what remains of your demand for usury, if ye are Indeed believers. 279. If ye do not, take notice of war from Allah and His Messenger: but if ye repent, ye shall have your capital sums; Neither will you deal with others unjustly, nor shall you be dealt with unjustly. Beware! false interpretations of these verses has led many individuals to assume that the prohibition only relates to situations where the creditor is likely to charge exploitatively high rates of interest. It is wrong to see the above translation as proof that the (sole) objective served by the prohibition of Riba is the avoidance of injustice (in the sense of exploitation of the poor debtor by the rich creditor). In Islam, there is no room for Riba, marginal or otherwise. Riba gives birth to an economic system that is unjust; one that favors the rich at the expense of the poor. Rather than reward for effort and entrepreneurship with profit, the Riba based economic system rewards capitalists. Islamic Finance attempts to create a fair economic system. It works on the principle of profit and loss sharing. Riba (Interest) is strictly prohibited in all its forms and kinds. Islamic banks enter into trade and investment to earn Halal profit as they neither take deposits/funds on interest nor do they advance loans on interest. They have to purchase and sell assets in order to make profit from the higher sale prices or enter into investment arena. The most common sale contracts used by Islamic banks are Murabaha, Salam, Istisna, sale on deferred payment basis while Ijara is the sale of the usufruct of an asset owned by the bank. For investment, the Islamic banks have Mudaraba, Musharaka and Wakala structures. Islamic banks have to strictly comply with the principles and rules of Sharia which prohibit outright any transaction involving alcohol, pork, gambling, etc. Further, the Islamic modes of finance and investment used by these banks must fulfill the basic conditions of these contracts to be considered Sharia compliant. An Example In an Islamic mortgage transaction, instead of lending money to the buyer, an Islamicbank buys the item from the seller, and sells it to the buyer at a profit with the sale price deferred and paid to the bank by the buyer/customer in installments. This mode of financing is called Murabaha. It is a Sharia requirement that the bank must purchase the asset and get the title/ownership, and hence the associated risks and potential benefits before selling it to the customer. In conventional financing, the bank does not assume ownership or the associated risk. In such a system, capital alone is used to produce more capital. Remember At DIBPL we have a full fledged Sharia Department that monitors every transaction the